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Chart of the day: Jet fuel cracks crash in Asia as airlines cut back China routes amid COVID-19 outbreak

Nilesh Shah of Envision Capital views the recent correction in the midcap IT space as a good opportunity to enter, especially to investors who didn't have a good measure of investment in IT. In an interview to CNBC-TV18, he said: "Some of the Tier-II companies, which essentially are doing extreme cutting edge work, will see higher growth rates over the course of the next 2-3 years."

His remarks come at a time when the IT sector has taken a backseat in 2022 so far, after outperforming the market for much of 2021.
<table width="364">
<tbody>
<tr>
<td style="text-align: center;" width="161">Index</td>
<td style="text-align: center;" width="109">Return 2022 YTD (%)</td>
<td style="text-align: center;" width="94">Return 2021 (%)</td>
</tr>
<tr>
<td style="text-align: center;">Nifty50</td>
<td style="text-align: center;">-0.6</td>
<td style="text-align: center;">24.1</td>
</tr>
<tr>
<td style="text-align: center;">Nifty IT</td>
<td style="text-align: center;">-17.5</td>
<td style="text-align: center;">59.6</td>
</tr>
</tbody>
</table>
One sector that has largely remained insulated from the fallout from the COVID-19 pandemic is the IT space. It has only grown exponentially, as companies spearheaded the much-needed scale-up while riding the digital wave.

The current quarterly earnings season has been a mixed bag for the sector, with IT behemoths like TCS, Infosys and HCL Tech largely exceeding Street expectations on the revenue front. However, margins felt squeezed for most of the companies owing to wage inflation and attrition.

<img class="aligncenter size-full wp-image-13316822" src="http://cms.cnbctv18.com/wp-content/uploads/2022/04/Apr-28-IT-stocks.jpeg" alt="" width="796" height="575" />

However, this hasn’t deterred Shah the slightest from the IT space. He is of the view that the sector looks promising for the next 2-3 years. “Maybe 2-3 quarters will still continue to be challenging for the IT pack,” he added.

<a href="http://www.cnbctv18.com/market/stocks/stock-market-news-live-updates-nifty50-bse-sensex-axis-bank-maruti-wipro-sbi-cards-vedanta-brent-crude-bitcoin-gold-rate-13324032.htm">Catch latest stock market updates with CNBCTV18.com's blog</a>

Correction in midcap IT provides a good entry point: Nilesh Shah

Indian equity benchmarks Sensex and Nifty50 started Tuesday's session on a negative note tracking weakness across most global markets but made a comeback in the afternoon, helped by an across-the-board recovery. 

Broader markets also bounced back sharply, giving the bulls a sigh of relief.

Here’s what veterans have to say about the market

Shankar Sharma, vice-chairman and joint managing director of First Global

The market veteran told CNBC-TV18 that the market has to take a breather and there is still a long way to go before one should start to get seriously worried. According to him, what happened in the last few sessions was nothing more than a small correction.

“We have had a vertical rally in the last 18 odd months and where do we go from here? The short answer to that is that<a href="https://www.cnbctv18.com/market/market-correction-long-way-to-go-before-we-get-seriously-worried-says-shankar-sharma-11562722.htm"> we still have a long way to go before we should start getting seriously worried</a>," Sharma said.

Steve Brice, Chief Information Officer at Standard Chartered Wealth Management 

He believes this is the buying on dips environment in the market.

“Usually when you get to November through April, we see significant gains for global equities, so seasonally this is the strongest period of the year. We have been in an unprecedented environment for two years and seasonality hasn’t worked that well but overall we should continue to see volatility pick up but ultimately we do believe<a href="https://www.cnbctv18.com/market/recommend-buying-on-dips-positive-on-india-neutral-on-asia-standard-chartered-wealth-11547752.htm"> it is a buying on dips environment as we go into the end of the year</a>,” he said.

Within neutral allocation to Asia, he would be overweight India. He said, “We are neutral Asia as a whole. We still believe that US and Europe are going to outperform. Within Asia we still have preference for India. We believe growth dynamics there and also with COVID-19 vaccinations picking up etc – overall story is still pretty positive for investors.”

Also Read:<a href="https://www.cnbctv18.com/business/vedanta-a-risky-bet-if-commodity-cycle-turns-jittery-hindalco-better-placed-go-india-advisors-11561842.htm"> Vedanta a risky bet if commodity cycle turns jittery, Hindalco better placed: Go India Advisors</a>

Dipan Mehta, Director, Elixir Equities 

Mehta is positive on Vedanta. He believes the company is a good trading play at this point of time and the current correction may be a good opportunity.

“By and large, I am positive on Vedanta and a correction like this may be a good opportunity. But one should keep in mind that these are great trading stocks, you can hold them for a few months also, but not part of a core holding,” he said.

Harish Krishnan, EVP and Senior Fund Manager-Equities of Kotak AMC

He said equity is a long term asset. “I would imagine that the kind of corrections (market is currently seeing) made at the stock level or at the index level, do provide an opportunity for a lot of investors who are underweight equities as an asset class, to participate into the asset class,” he said.

Also Read:<a href="https://www.cnbctv18.com/personal-finance/new-age-businesses-buy-first-then-test-model-should-change-says-axis-amc-11563972.htm"> New age businesses: 'Buy first, then test' model should change, says Axis AMC</a>

He said the next 18 to 24 months are going to be a lot more polarized. He said it is unlikely to be what was seen in the last 18 months, wherein all stocks did well. 

“It is going to be somewhat of a stock specific kind of approach and therefore one will have to take very calculated bets going ahead to participate in the next 18-24 months,” he explained.

Sushil Kedia Founder of Kedianomics 

Kedia remained bullish on telecom stock. He said "they did not come down at all in this market correction. So we will continue to ride them with trailing stops," he said. 

Mehraboon J Irani of Gini Gems Consultants

The market expert too remained positive on the country's telecom story. "The question is whether you buy Bharti Airtel as a trading bet. The answer is: Certainly not. But if one has it in the portfolio, and one wants a proxy for the telecom sector, I think certainly one will continue to hold on to it. Will the stock be higher than where it is right now or the next one? Yes. They have taken care of the liquidity problem with the recent rights issue.” 

He said the tariff hike was also a welcome move and should definitely help the company as far as the incremental revenue to EBITDA goes. 

Catch all market highlights <a href="https://www.cnbctv18.com/market/stocks/stock-market-news-live-updates-bse-sensex-nse-nifty50-bank-nifty-bitcoin-price-gold-rate-sbi-bharti-airtel-latent-view-analytics-ipo-market-11559312.htm">here</a>.

Buy the dip or sell the bounce? Here's what experts advise

The United States Securities and Exchange Commission (SEC) said that it suspended trading in the securities of 15 companies on Friday because of “questionable trading and social media activity”. The latest step is the third and largest in a series of temporary trading halts in response to social media activity amid volatile trading in “meme stocks”.

One of the firms, Blue Sphere Corp — a penny stock — was recently highlighted in a report after its spike in value following a barrage of online posts.

Melissa Hodgman, acting director of the SEC’s enforcement division, has said in a statement that they proactively monitor social media for suspicious trading activities related to stock promotions. Frenzy on social media has increased retail interest in a range of stocks. This has led to volatile trading. The SEC is reviewing the market and trading data, the agency has said.

Some of the suspended stocks are Bebida Beverage Co., Ehouse Global Inc., Eventure Interactive Inc., and Eyes on the Go Inc., apart from Blue Sphere Corp.

The regulators ventured further into targeting penny stocks driven into price and volume frenzies by incessant social media pumping.

About 90 billion shares changed hands daily in February on venues operated by “over-the-counter” markets group, which added up to 1.7 trillion shares in the month, data compiled by Bloomberg Intelligence shows.

Blue Sphere is one such example that vaulted from obscurity to viral sensation.

Few days ago, SEC suspended trading in SpectraScience, whose shares had surged 633 per cent in 2021. An SEC order noted that while the company hadn’t filed reports in years and its phone number didn’t work, “social media accounts may be engaged in coordinated attempt to artificially influence” its share price.

Similarly, none of the companies suspended on Friday have filed any information with the SEC for over a year. Under the federal securities laws, the SEC can prohibit trading for 10 days and bar a broker-dealer from soliciting investors to buy or sell the stock again until certain reporting requirements are met.

US securities watchdog suspends trading in 15 stocks over hyped social media activity

The latest analysis and commentary by stock market guru Ajit Mishra of Religare Enterprises on what is moving the markets today.

Mishra’s stock recommendations for the day are:
<ul>
 	<li>Buy Berger Paints with a stop loss of Rs 495 and target of Rs 555.</li>
 	<li>Buy Biocon with a stop loss of Rs 335 and target of Rs 375.</li>
</ul>
Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.

Market expert Ajit Mishra is positive on these stocks

In his latest analysis and commentary, stock market guru Mitessh Thakkar of mitesshthakkar.com shared his views on what is moving the market today.

Thakkar has been tracking the equity markets since 1999 and he regularly shares his views on stocks and indices.

Thakkar’s stock recommendations for today's trade:
<ul>
 	<li>Dabur India is a 'buy' around Rs 500 with a stop loss of Rs 490 and a target price of Rs 520.</li>
 	<li>Nestle India is a 'buy' with a stop loss below Rs 16,990 and a target price of Rs 18,200.</li>
 	<li>ICICI Prudential Life Insurance Company is a 'sell' with a stop loss of Rs 337 and a target price of Rs 310.</li>
 	<li>Wipro is a 'sell' with a stop loss of Rs 190 and a target price of Rs 178.</li>
</ul>
Follow stock recommendations by Mitessh Thakkar <a href="https://www.cnbctv18.com/author/mitessh-mthakkar-111/">here</a>

Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.

Mitessh Thakkar's quick take on some handpicked stocks

In his latest analysis and commentary, stock market guru Sudarshan Sukhani of S2 Analytics.com shared his views on what is moving the market today.

One of India's best known technical analysts and a certified financial technician, Sukhani has been a full-time trader since 1993 and has participated in many investor camps throughout India.

Sukhani’s stock recommendations for the day are:
<ul>
 	<li>Divis Laboratories is a 'buy' with a stop loss of Rs 2,330 and a target price of Rs 2,450.</li>
 	<li>Bajaj Auto is a 'sell' with a stop loss of Rs 2,450 and a target price of Rs 2,250.</li>
 	<li>ICICI Prudential Life Insurance Company is a 'sell' with a stop loss of Rs 335 and a target price of Rs 315.</li>
 	<li>RBL Bank is a 'sell' with a stop loss of Rs 128 and a target price of Rs 110.</li>
</ul>
Follow stock recommendations by Sudarshan Sukhani <a href="https://www.cnbctv18.com/author/sudarshan-sukhani-159/">here</a>

Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.

Sudarshan Sukhani recommends a 'sell' on these stocks today

Market guru Ashwani Gujral of ashwanigujral.com gave his top stock picks for Thursday’s trade in an interview with CNBC-TV18.

One of India’s most famous market analysts, Gujral has been a full-time trader of stocks and derivatives for more than 20 years and runs a technical analysis plus trading chat room.

Gujral's stock recommendations for the day are:
<ul>
 	<li>UPL is a 'buy' with a stop loss of Rs 340 and a target price of Rs 385.</li>
 	<li>Britannia Industries is a 'buy' with a stop loss of Rs 2,800 and a target price of Rs 2,910.</li>
 	<li>HCL Technologies is a 'buy' with a stop loss of Rs 470 and a target price of Rs 495.</li>
 	<li>Kotak Mahindra Bank is a 'sell' with a stop loss of Rs 1,190 and a target price of Rs 1,140.</li>
 	<li>Bajaj finance is a 'sell' with a stop loss of Rs 2,100 and a target price of Rs 2,050.</li>
</ul>
Follow stock recommendations by Ashwani Gujral <a href="https://www.cnbctv18.com/author/ashwani-gujral-115/">here</a>

Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.

These are market expert Ashwani Gujral's top stock recommendations

The latest analysis and commentary by futures and options (F&amp;O) market expert Ashish Chaturmohta, head-technical and derivatives of Sanctum Wealth Management on what is moving the markets today.

Chaturmohta’s stock recommendations for today's trade:
<ul>
 	<li>Buy Dr Reddy's Laboratories with a stop loss of Rs 3,750 and target of Rs 3,940-3,980.</li>
 	<li>Buy Divi's Laboratories with a stop loss of Rs 2,350 and target of Rs 2,520.</li>
 	<li>Sell Eicher Motors with a stop loss of Rs 13,550 and target of Rs 12,800.</li>
</ul>
Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.

Top F&O stock picks by market expert Ashish Chaturmohta of Sanctum Wealth Management

Market guru Prakash Gaba of prakashgaba.com gave his top stock picks for Wednesday’s trade in an interview with CNBC-TV18.

A Sebi-registered research analyst and trading mentor, Gaba provides equity research, short and long term stock recommendations and equity investment tips.

Gaba’s stock recommendations for the day are:
<ul>
 	<li>Buy Ashok Leyland with a stop loss of Rs 47 and target of Rs 53-55.</li>
 	<li>Buy UPL with a stop loss of Rs 335 and target of Rs 370.</li>
</ul>
Follow stock recommendations by Prakash Gaba <a href="https://www.cnbctv18.com/author/prakash-gaba-117/">here</a>:

Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.

Market maven Prakash Gaba recommends a buy on these stocks

Here is the latest analysis and commentary by stock market guru Aditya Agarwala of Yes Securities on what is moving the markets today.

Agarwala’s stock recommendations for the day are:
<ul>
 	<li>MindTree is a buy with a stop loss of Rs 815 and target price of Rs 755.</li>
 	<li>Hindustan Unilever is a buy with a stop loss of Rs 2,350 and target price of Rs 2,600.</li>
</ul>
Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.

Market analyst Aditya Agarwala of Yes Securities recommends buy on these stocks

In the week gone by, it was the first week that the Nifty closed in the green after five straight weeks of a sell-off. The market is now down 11 percent from the high that it hit in October and there is a massive bear market across asset classes, not just in equities, but across the world of cryptos as well. What does then one do in this market fall?

In this episode of ‘Smart Money’, Benaifer Malandkar, Chief Investment Officer at RAAY Global Investments, talks about how one should approach the markets after this massive fall.

Malandkar said, “Systematic Investment Plan (SIP) is a very important part of asset allocation for most retail investors. At this point in time, when markets are actually giving an opportunity to kind of get in at better levels or maybe seek better investment entry points with a longer horizon in mind, I would definitely think that not only maintaining SIP is extremely important. But if there is spare money available, where you could allocate a little bit more, it would be absolutely prudent to increase the SIP allocations at this point.”

She added that investors should take a step back and sort of gauge if they are happier with a risk-return of the larger-cap funds or the mid-cap funds and "do a little bit of analysis into what would give them, let us say a moderate return over periods of time that they are looking to achieve, and then probably increase the allocation based on that understanding."

Watch video for more  

Also Read: <a href="https://www.cnbctv18.com/finance/investors-bet-big-on-sip-inflows-climb-30-to-rs-124-lakh-cr-in-fy22-amfi-13529772.htm">Investors bet big on SIP, inflows climb 30% in last fiscal: Association of Mutual Funds in India</a>

Prudent to continue or even increase SIPs on deeper market corrections: RAAY Global Investments

[wealthdesk shortname="ACC" isinid="INE012A01025" bseid="500410" nseid="ACC" sector="Cement - Major" exchange="nse"]

In an interview with CNBC-TV18, Rajesh Ravi, Institutional Research Analyst – Cement, HDFC Securities, said that price hikes are needed to maintain margin for the industry. He explained that cement companies need to hike prices by Rs 50 per bag in order to sustain their margins in the June quarter. However, he cautioned that while cement demand is strong, there’s a need to see if the proposed price hike can be absorbed by the consumers.

"Cement industry in the peak of Q4 could not take price hike partly because January demand was bad and late February onwards there had been price recovery. Given that most of the other commodities have already rallied significantly, cement prices haven’t shot up to that extent. And given that now the cost for the industry is staring to be at least Rs 600 high on a per tonne basis, there is nothing Rs 50 price hike which is needed just to sustain the Q4 numbers and if the industry has to go back to what it has delivered in Q1 and Q2 of FY22, another Rs 30 to 40 price hikes are needed. Now, will demand support that? I believe it has to be pushed through. So, I believe demand is there, the commentary so far is not disappointing, I will say, however, will companies be able to take another Rs 30 to 40 price hike? Obviously, there will be a lot of pull and push which will go through," he said.

Holcim Group, the world’s largest cement manufacturer, may exit India as part of a global strategy in a bid to focus on its core markets. The Switzerland-based conglomerate is currently considering a sale of its 63.19 percent stake in Ambuja, and 4.48 percent stake in ACC Ltd.

Also Read: <a href="https://www.cnbctv18.com/business/holcim-group-worlds-largest-cement-maker-may-exit-india-soon-how-this-will-impact-the-industry-13188342.htm">Holcim Group, world’s largest cement maker, may exit India soon; how this will impact the industry</a>

Ravi believes lower supply from Holcim Group in Indian cement market will be a positive for the industry. He believes that Holcim’s potential exit strategy is aimed at lowering its exposure to the cement space from 60 percent to 35 percent. He also added that it is unlikely that a big premium will be seen for Holcim’s cement assets.

"As far as the Holcim, the stock of Holcim selling off Indian asset, they have published a note recently and what we find is that Holcim has set a target to reduce its cement portfolio from 60 percent in CY20 to almost 30-35 percent odd by CY25. And in this context, they have also sold of assets and few other geographies - Brazil, they have exited, North Ireland they have exited and even Eastern Africa and Madagascar markets they exited. India being a big size, exiting it on one go may accelerate their target to exit Indian market and how will this impact ACC-Ambuja’s performances, it is early days to comment, but broadly what I understand is these M&amp;As can slowdown the renewed capex which ACC and Ambuja has been talking about so far. And that could be a good news for the industry. When two big players were talking about getting aggressive on the capex front, if they slowdown that would reduce the demand supply imbalance and support the industry," he explained.

Cement maker ACC Ltd recently posted its Q1 earnings. The company reported a 29.6 percent year-on-year (YoY) drop in consolidated net profit at Rs 396.3 crore for the first quarter ended March 31, 2022. The company, which follows a January-December financial year cycle, posted a net profit of Rs 563 crore in the same period a year ago.

Ravi believes ACC’s results were largely in line with the estimates. In fact, the company’s margin exceeded estimates owing to its continued focus on cost.

"ACC results are in-line with what we have been estimating for the industry trend in Q4FY22. Flattish volumes sequentially, flattish realisation, flattish volume year-on-year and there was a slight margin recovery as the overall cost could be contained to healthy cost control and because of fuel prices remaining stable in this quarter on an elevated way," he said.

Watch the video for the full interview.

Catch all stock market updates <a href="https://www.cnbctv18.com/market/stocks/stock-market-news-live-updates-nifty50-bse-sensex-hcl-tech-nestle-lt-tech-tata-elxsi-brent-crude-bitcoin-gold-price-13222162.htm">here</a>

Cement cos to face margin heat if price not increased by Rs 50/bag: HDFC Securities

HDFC twins have had a volatile run the past few weeks. Right after the merger deal between HDFC Bank and HDFC Ltd was announced, the shares of HDFC twins rallied, however, thereafter losing much its fizz.

Rising input costs, inflation, has been putting a dampener for many of the businesses. In fact, some of the fast moving consumer goods (FMCG) companies have had major headwinds to deal with.

However, Saurabh Mukherjea, Founder at Marcellus Investment Managers, remains eternally bullish on some of the FMCG names like Asian Paints and Nestle. He also believes no other bank remotely matches up to HDFC Bank.

In an interview with CNBC-TV18,  he shared his views on the FMCG sector as well as on HDFC twins.

Here are the edited excerpts:

Q: I wanted your thoughts first on some of your FMCG favorites, where there are some headwinds which are emerging now, names like Nestle and Asian Paints, which have been underperformers this year. And there have been some headwinds like the inflation and input costs hikes, etc. Your thoughts on whether this is a re-entry opportunity or whether these headwinds perhaps could put a bit of a break on the kind of compounding machines that they have been?

A: I don't see any issues there. I mean, let's take Nestle to begin with, it's compounded 25 odd percent for the last five years, perhaps a little bit more than that on share prices. Profits have compounded 20-23 percent and as we discussed on this channel, for many years, it's an obviously dominant player in a category that is anything but discretionary. I don't think baby milk powder is a discretionary consumption category, and given the sort of dominance it has, you might get from quarter to quarter, the management will agonize about cost pressure but when a company, which has a 90 percent market share, has utter dominance in a category, which is a compulsory purchase, you have to chuckle a little bit when the management talks about input cost pressure and you chuckle and you buy some more. So one of the relatively straightforward investments in India 70-80 percent RoCEs in a USD 2 billion category with barely any competition.

In case of Asian Paints, we have seen this again and again over the last 20 years, whenever crude doubles over a two year period, Asian Paints’ operating margins and gross margins hold on rock solid. Typically, when crude doubles, the speculators do exactly what they're doing, they try to sell Asian Paints and the shares rally very nicely. I think last 12 months, Asian Paints is again around 24-25 percent, long-term compounding has been like that last 12 months.

As we've said before, we're seeing rapid market share gains over the last four-five years and we carry on just buying more of this - both of these stocks every single day really. I can't see any reason why quarterly margin pressure should be any concern for a long-term investor.

Also Read: <a href="https://www.cnbctv18.com/videos/earnings/nestle-revenue-likely-to-grow-95-on-hikes-in-maggi-and-milk-based-product-prices-13213892.htm">Nestle revenue likely to grow 9.5% on hikes in Maggi and milk-based product prices</a>

Q: Let's get to the HDFC twins. I want to flip the question in terms of your thought process in HDFC Bank around a little bit and ask you what are your thoughts on why both these stocks have been sold recently and actually even before the entire merger etc, the run up and then the sell-off, the selling started much before that. Have you tried to understand what is going on the other side?

A: We don't spend time thinking about stock price movements. I know what you're getting at, you want me to get into a discussion on why our FIIs are selling. We honestly don't lose any sleep about that. We focus on businesses, we do a lot of work on underlying businesses and HDFC Bank as I've said, perhaps two weeks ago on your channel, that last five years have been spectacular, both sides of the balance sheet. They have blazed away 20 percent loan book compounding, 20 percent deposit compounding- no other private sector bank has remotely been able to compete with HDFC Bank on both sides of the balance sheet. Alongside that stellar asset quality management, again something no other private sector bank has been able to manage both on gross NPAs and on net NPAs and unsurprisingly, therefore, 17-18 percent RoE outcomes which again, no other private sector bank matches. So you have got to be looking at a class business. Similarly HDFC Limited, a 2 percent RoA, difficult to see too many NBFCs do 2 percent RoA at this scale.

You're bringing together two good businesses. It doesn't take a genius to figure out that the the merger is RoA accretive, bring  the two businesses which will together have comfortably a 2 percent RoA and it is EPS accretive. The NIMs (net interest margins) will go down because mortgages tend to have lower NIMs but that's not surprising. It's RoA accretive and EPS accretive because you're bringing together two very profitable businesses. And then if you get into the leverage, which is because the Reserve Bank of India (RBI) has lower risk rates on mortgages, I think HDFC Bank will be able to leverage up more once HDFC Limited is merged.

You should be seeing RoEs exceed the current 17-18 percent. HDFC Bank does so. 2 percent RoA stays but we lever up further because of the mortgage book that HDFC has, and you should see RoEs exceed and finally, growth should also go up because currently HDFC Bank hands over the mortgage book to HDFC Limited. As a result, HDFC Bank's growth is reduced by that because mortgages are run off on HDFC Limited’s book rather than on HDFC Bank’s book and as HDFC Bank holds on to mortgages, growth should also accelerate. So, two good franchises coming together, your RoE goes up, your growth goes up, I don't see why we shouldn't be buying more. In fact, we are buying more as we speak.

In all of these stocks, we hold many thousands of these and because I invest in Marcellus’ PMSs, I end up also owning these stocks. So in all of these stocks, I have an obvious self interest in talking about them and laying out our investment.

Also Read: <a href="https://www.cnbctv18.com/market/stocks/hdfc-hdfc-bank-merger-share-price-fitch-ratings-says-amalgamation-to-shake-up-sector-dynamics-13130652.htm">HDFC-HDFC Bank Merger to shake up sector dynamics: Fitch Ratings</a>

Q: This disclaimer is very important and thanks for pointing that out. But there is no denying the fact that some of these operation metrics like RoE and RoA are very strong, especially post the merger. But I think the question arises on the pre-provisioning operating profits, which have been on a slightly weaker side and the argument that one of the analysts was making is that, why should I buy an HDFC Bank with weak pre-provisioning operating profits, when I can perhaps look at something like an ICICI Bank, so it's sort of like a relative comparison. You wouldn't agree with that?

A: We have managed 9,000 families’ life savings. We have to back companies which have delivered decade after decade. We're not having a punt in the stock market staring at stock prices, following which broker is saying what, what are FIIs doing, what are DIIs doing, we're managing the life savings of 9000 families, we have to back companies who have delivered decade after decade in a stellar fashion. It's really important to understand that.

Now, I'm not saying ICICI Bank is doing anything less than impressive. I think Sandeep Bakhshi has done a tremendous job at ICICI Bank. But HDFC Bank's delivery over the last five years, over the last 10 years, over the last 20 years has been in a different league to any other bank, even in the last three years, let alone five years. Even in the last three years, you cannot see any other bank blazing away like this, both sides of the balance sheet, superb asset quality control, great RoEs, nobody else compares and therefore it's not a speculative punt that we have to get, we're here to back great franchises, which can compound our clients’ money at 20-25 percent over long periods of time, and give Indian families a good retirement. That's our job.

Our job is not to say whether ICICI Bank or Axis Bank or anybody else is better or worse. If somebody else wants to have a sort of speculative comparison, I'm happy to engage in that debate but that's not my job in terms of managing money for Indian families.

Also Read: <a href="https://www.cnbctv18.com/market/pick-sectors-carefully-as-inflation-macro-headwinds-playing-spoilsport-aberdeen-13197132.htm">Pick sectors carefully as inflation, macro headwinds playing spoilsport: Aberdeen</a>

Q: The other point, which has been raised is that for a lot of these financial institutions, it's about the active leadership and, of course, Mr Aditya Puri did a great job at HDFC Bank and Mr Keki Mistry at HDFC. But now, HDFC Bank has transitioned and Mr. Mistry also, perhaps, over the next two years or so, will retire. So the issue is, would the new leadership be able to take along this behemoth and continue to produce the kind of results that they did over the last five or six years or so. You don't think that's a worry?

A: We've monitored very closely, the succession planning that HDFC Bank did in the run-up to Aditya Puri’s retirement. We have monitored very closely how Sashi Jagdishan was mentored by Aditya Puri. In fact, I used to work in the building next door to HDFC Bank's headquarters at that time. So I got a pretty  close view of how assiduously, how carefully, Sashi Jagdishan was mentored and trained by the erstwhile CEO.

As I said, if you look at operating metrics from the time Aditya Puri left and from the time Sashi Jagdishan took charge, the operating metrics are stellar, and underlying on the ground performance; you cannot fault them. They are growing at a rate which I haven't seen any large bank grow anywhere in the world, forget India! To make a bank this scale to roar away 20 percent both sides of the balance sheet is a pretty big deal. And under Sashi Jagdishan so far, the delivery has been impeccable on asset quality and on growth. So yes, we look at these issues very carefully. Succession planning is a big priority for Marcellus. But so far, both in the run-up to Aditya Puri’s retirement and post that, once Sashi Jagdishan has taken charge. I think so far, he has delivered 10 out of 10.

Watch the accompanying video for more

Catch all stock market updates <a href="https://www.cnbctv18.com/market/stocks/stock-market-news-live-updates-nifty50-bse-sensex-hcl-tech-nestle-lt-tech-tata-elxsi-brent-crude-bitcoin-gold-price-13222162.htm">here</a>

Saurabh Mukerjea backs HDFC Bank, Nestle and Asian Paints; full Q&A transcript

In an interview with CNBC-TV18, market experts Rajat Bose of rajatkbose.com and Parthiv Shah share their views on stocks such as Bandhan Bank, Tata Elxsi, Yes Bank, HCL Technologies and more.

Bandhan Bank

Bose: “If you are willing to hold it for the long term then you need to put a stop loss at Rs 249 – that is its recent low. Otherwise, if that is too stretched a stop loss then you should bail out of it because there are some signs of weakness. Unless you are willing to hold it for the long term I would suggest that you switch to some other banking stock.”

Shah: “Probably not a best of the bank to own in the current scenario. I would suggest a switch from Bandhan Bank and if one wants to play a little aggressive I would not mind something like a private regional bank—Federal Bank where the valuations are a lot more comforting.”

Yes Bank

Bose: “I would put a stop loss at Rs 12 and if the level of Rs 12 is broken on closing prices basis one should exit. Not a good stock to hold on forever.”

Shah: “Talking about Yes Bank, I think not the best of the bank to own. We are not very upbeat on Yes Bank and again suggest preferring regional banks names like Federal Bank as a switch from Yes Bank.”

HCL Tech

Bose: “HCL Tech has broken all support levels and it can go down further. So I suggest any rally or current levels one should seek an exit unless of course, you are a very long-term investor. Because this sector is now under a cloud, probably there will be more on the downside in the immediate future, then there will be consolidation or further upside.”

Shah: “There are headwinds to the business models of HCL Technologies despite the fact it has a stellar track record over the last 5-10 years. If the stock were to go down lower to say levels of around Rs 900 probably that would be a good area to again chip in and try and cost average.”

Tata Elxsi

Bose: “At the moment, the maximum target that we can envisage is about Rs 9,700. But my point is that if it were to fall from the current levels, that is, if it were to fall below Rs 7,700, then it can actually test Rs 7,300 and below that the 200 day moving average could be tested. This is an uptrend and considering the fact that the kind of chart pattern that is developing it is this way too expensive at this point in time. So any fall below Rs 7,500 should be viewed with caution and at least part profit booking is definitely advocated.”

Shah: “The ecosystem that Tata Alexei has built, I think gives us a lot of confidence that this company can do extremely well. So probably, I think this company could time correct for some time, but as long as they show the growth that they have shown, probably I think I would suggest a hold on this company.”

Watch the accompanying video for more 

Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.

Expert takes: Why you can buy Tata Elxsi and avoid Yes Bank

Gary Schlossberg, Global Strategist, Wells Fargo Investment Institute, on Wednesday, said that he favours the US market over India and other emerging markets (EMs). He explained that the economic growth outlook in the US looks optimistic.

“We continue to favour the US market. We think all things considered this is the place to be in large, liquid, high-quality stocks, particularly those that are better insulated from the economic cycle," he said.

He added, "I think for the moment, there is some optimism in the US about the economy and the immediate growth outlook. There was a lot of apprehension about the Federal Reserve raising interest rates, inflation eating into incomes, etc. It's still there though."

He expects to see a slowdown in growth.  However, despite the slowdown, he isn’t forecasting a recession in the US.

"Given the slowdown in growth that we expect to see here, we are still not forecasting a recession in the US. The real test will be in 2023, depending on how things play out with the war in Ukraine, the lockdowns that we are seeing in China and of course, inflation and the Fed’s trajectory of interest rate increases,” said Schlossberg.

He believes a slowing economy will dampen the earnings momentum.

“Earnings growth will be moderate this year, still respectable enough; some of it frontloaded. As we move through the year, we think the slowing economic growth will dampen those earnings gains, but we still think they are strong enough to support gain in the stock market in the mid-single digits. As we move into 2023, we think the economy becomes more vulnerable and our earnings growth is downgraded accordingly, down into low single digits and we think the market will respond accordingly as well,” Schlossberg told CNBC-TV18.

Also Read: <a href="https://www.cnbctv18.com/economy/world-economic-outlook-imf-reduces-indias-growth-for-fy23-to-89-over-weak-domestic-demand-13203332.htm">World Economic Outlook: IMF reduces India's growth for FY23 to 8.9% over weak domestic demand</a>

On crude oil prices, he said that the demand outlook has softened a bit. There’s also a slow recovery that is seen in US oil production, he shared.

“The demand outlook has softened a bit and that contributed at times to the retreat in oil prices. We still think the underlying tone of the market will be fairly tight, just given the supply disruptions," he mentioned.

"The latest, of course, are the problems in Libya, a slow recovery in US oil production, a reluctant oil production recovery, natural gas shipping more overseas, to Europe, in anticipation of a reduction in natural gas imports from Russia. So all in all, we think the oil market will maintain a firm tone, despite a fairly soft economic outlook, not only in China but of course in Europe,” said Schlossberg.

Watch the video for the full interview.

<a href="https://www.cnbctv18.com/market/stocks/stock-market-news-live-updates-nifty50-bse-sensex-brent-crude-bitcoin-gold-price-larsen-toubro-infotech-tata-elxsi-results-share-price-13208602.htm">Catch all the latest updates from the stock market here</a>

Wells Fargo's global strategist explains why he would rather put money in US stocks and not in emerging markets

Mahesh Nandurkar, India Strategist, Jefferies, on Tuesday, explained his bullish stance on the information technology space. In an interview with CNBC-TV18, he stressed that he remains overweight on IT stocks on the basis of strong hiring in the space, and the revenue visibility. He reiterated that demand and revenue growth remains strong for IT stocks.

He said, “The reason we continue to stay overweight on IT is because of a combination of strong demand visibility, which is visible in constant currency dollar revenue growth on a year-on-year (YoY) basis, also strong hiring numbers that we continue to see. Also if we are looking at a twin deficit kind of a scenario, rising inflation and the taper etc., happening in the US, then you do need some dollar businesses in your portfolio.”

Nandurkar highlighted that it is the FII selling that is keeping the banking stocks under pressure. He added that the Indian market is one of the best in the region and within the emerging market (EM) basket, but it is trading at elevated levels.

Also Read: <a href="https://www.cnbctv18.com/market/stocks/it-stocks-tcs-infosys-wipro-is-it-good-time-to-buy-ashwini-agarwal-view-12979272.htm">Is it a good time to buy IT stocks? Here's what Ashmore's Ashwini Agarwal thinks</a>

He said, “There is a clear understanding that within the whole bunch of emerging markets, India's structural story is standing tall and there is a broader agreement that at the fundamental level, from the bottom-up perspective, from the economic outlook perspective, India is looking like one of the best markets in the region and within the EMs."

"But the key concern is still valuation, a lot of that positive news is already there in the price. In fact, over the last 3-4 months in the current calendar year, despite the fact that oil has gone up the way it has, the Indian market has ended up outperforming,” he added.

On the real estate space, he believes the market is at the beginning of a property upcycle. He thinks that real estate will be in a 5–6-year upcycle. According to him, risk-reward is still in the favour of the real estate stocks.

“From a risk-reward perspective, I still believe that this is one of the best sectors- real estate. It is a very small sector as far as the overall market weight is concerned. So, many investors can afford to ignore it at this point in time," he mentioned.

"But I believe that given the various tailwinds in the form of industry consolidation, very attractive trends in terms of affordability, the unsold inventory is almost close to an 8-9 year low, so all these point towards the fact that we are in for 5-6 years of upcycle. So from that perspective, there is a lot of money to be made here, according to me. Yes, there could be some near term pullbacks because of the global worries and oil-related worries,” Nandurkar said.

On autos, he mentioned that the passenger vehicle (PV) growth has bottomed out. Going forward, he expects it to improve. “The passenger vehicle car industry growth has bottomed out. The margins that several of the four-wheelers are showing currently are close to their bottom, but it's a good contra bet to keep in your portfolio from a 12-24 month perspective. So yes, we are quite overweight on the four-wheeler segment of autos,” said Nandurkar.

Watch the video for the full interview.

<a href="https://www.cnbctv18.com/market/stocks/stock-market-news-live-updates-nifty-bse-sensex-brent-crude-bitcoin-gold-price-mindtree-share-price-results-larsen-toubro-infotech-13194852.htm">Catch all the latest updates from the stock market here</a>

Remain bullish on IT stocks due to strong hiring, revenue visibility: Jefferies

[wealthdesk shortname="Mindtree" isinid="INE018I01017" bseid="532819" nseid="MINDTREE" sector="Computers - Software" exchange="nse"]

In an interview with CNBC-TV18, Sandip Agarwal, Research Analyst - Institutional Equities, Edelweiss Securities, said that there's a hiring boom in the technology sector. In fact, recruitment in the space is up 2-3 times over the course of the last 12 months, he shared.

"The data of last 12 months of recruitment shows that it is 3x, 2x for most of the companies," he said.

On the tech sector, he said that it is seeing a healthy correction in a long-term bull cycle. He added that some time correction in tech stocks is likely.

"This is this healthy correction or a short-term correction in a very long cycle. I think there is some time correction and there is some concern of supply which will get resolved in the next few months and then these stocks will start moving," he added.

Also Read: <a href="https://www.cnbctv18.com/market/remain-bullish-on-it-stocks-due-to-strong-hiring-revenue-visibility-jefferies-13196642.htm">Remain bullish on IT stocks due to strong hiring, revenue visibility: Jefferies</a>

<a href="https://www.cnbctv18.com/earnings/mindtree-q4-results-net-profit-rises-49-yoy-to-rs-4731-crore-beats-estimates-13187042.htm">Mindtree</a> posted its Q4 earnings. The Larsen &amp; Toubro IT company reported a 49 percent year-on-year (YoY) jump in net profit at Rs 473.1 crore for the fourth quarter ended March 31, 2022. In the corresponding quarter last year, the company had posted a net profit of Rs 317 crore.
<div>Mindtree's consolidated revenue from operations grew by 37.4 percent to Rs 2,897.4 crore during the quarter under review from Rs 2,109.3 crore in the corresponding quarter of 2020-21.</div>
<div></div>
Sharing his insights on Mindtree post its Q4 results, he said that some short-term challenges on the supply side could be a possibility.

"We will see temporary, short-term challenges only on the supply side. And if you see yesterday's numbers of Mindtree also, broadly, they were in line with expectation on all fronts, and the commentary was slightly better," he said.

Agarwal remains optimistic on L&amp;T Infotech (LTI) stock. He expects a profit after tax (PAT) growth of 25-30 percent from the company.

"If LTI put a 30 percent PAT growth, which I believe will happen, then we are looking at 26-27 times for a company, which is growing at more than 20 percent and PAT growth of 25 percent probably once the attrition issue gets resolved. So a ratio of 1-1.2 times for such good companies is not very expensive," he explained.

Also Read: <a href="https://www.cnbctv18.com/market/pick-sectors-carefully-as-inflation-macro-headwinds-playing-spoilsport-aberdeen-13197132.htm">Pick sectors carefully as inflation, macro headwinds playing spoilsport: Aberdeen</a>

Agarwal believes the price run is too sharp in Tata Elxsi even though it’s a good company.

"I think the stock has run up quite a bit. So I think this price run up is too sharp to justify a buy or even a hold. But it's a very good company, great management. So for a long-term investor, it should not matter. But in near-term, I think this price may see a good correction from here," he said.

Watch the video for the full interview.

Catch all stock market updates <a href="https://www.cnbctv18.com/market/stocks/stock-market-news-live-updates-nifty-bse-sensex-brent-crude-bitcoin-gold-price-mindtree-share-price-results-larsen-toubro-infotech-13194852.htm">here</a>

Tech sector sees hiring boom as recruitment more than doubles in last 12 months: Edelweiss Securities

[wealthdesk shortname="HDFC Bank" isinid="INE040A01034" bseid="500180" nseid="HDFCBANK" sector="Banks - Private Sector" exchange="nse"]

Adrian Lim, Asian Equities - Investment Director at Aberdeen, said that it is difficult to remain bullish on all sectors in the face of macro headwinds. He believes there’s a need to be selective in the market. He explained that inflationary pressures are building up in India and other developing Asian markets.

"In this current environment, it's very difficult to be bullish about the complete market and all sectors when there are quite a few stress points for the economy over the near-term," he said.

"I think investors need to be very careful about what they invest in here. Currently when you look at developed markets and emerging markets, there are some top down calls that are not unique to India alone, inflationary pressures are building across the region, not just in India, not just in Asian emerging markets as well, it's also emerging in Asian developed markets," he added.

Also Read: <a href="https://www.cnbctv18.com/market/remain-bullish-on-it-stocks-due-to-strong-hiring-revenue-visibility-jefferies-13196642.htm">Remain bullish on IT stocks due to strong hiring, revenue visibility: Jefferies</a>

He mentioned that in the current environment, it is difficult to read short-term movements of stocks.

"I think in this current climate of volatility and macro news, it is very difficult to read too much into the short-term gyrations of stocks," he said.

Lim is bullish on HDFC Bank, HDFC Ltd and Infosys from a medium to long-term perspective.

"We still like HDFC, HDFC Bank, Infosys. These are names that you brought up for the medium-term and long-term. But it's undeniable that there'll be some periods of weakness," Lim mentioned.

Also Read: <a href="https://www.cnbctv18.com/videos/market/signs-of-demand-for-crude-coming-off-mark-matthews-13196422.htm">Signs of demand for crude coming off: Mark Matthews</a>

On HDFC Bank and HDFC Ltd’s merger, he explained that there will be synergies and cost advantages.

"There are synergies and advantages in the merger of these two entities as both of these companies have been very well run for a very long time now. So it is more likely to see benefits accrue over a multi-year basis than over a quarter- to-quarter basis. But we are positive and bullish on both of these names coming together," he said.

On the new-age platform companies, Lim believes there's a fair amount of risk involved. However, he likes Policybazaar, Info Edge and Nykaa within the space.

"I think that for investors, these internet business models are volatile ideas, with higher risk. It doesn't mean you won't make money, but you have to be very selective about what you hold. We don't currently own Paytm shares. Within this ecosystem, we like Policybazaar, Info Edge, Nykaa; we think these are the stronger ideas within this space, but it's still not a low risk call," he said.

Watch the video for the full interview.

Catch all stock market updates <a href="https://www.cnbctv18.com/market/stocks/stock-market-news-live-updates-nifty-bse-sensex-brent-crude-bitcoin-gold-price-mindtree-share-price-results-larsen-toubro-infotech-13194852.htm">here</a>

Pick sectors carefully as inflation, macro headwinds playing spoilsport: Aberdeen

The Indian market is attractive but compared to Asian peers, especially China, there is a disadvantage,  according to Manpreet Gill, senior investment strategist at Standard Chartered Bank. The reason? valuations.

“When it comes to Indian markets, our view is, from a regional perspective, a bit more neutral. I mean, (we were) overweight on India last year but today we are looking from a relative perspective, at least more than outperformance relative Asia potentially coming from markets like China, where valuations are far more bombed out,” said Gill.

He noted that even though the headline inflation numbers are quite high, some of the factors behind inflation are starting to slow down.

“We are getting a bit of a bifurcation across different major regions. The headline numbers, of course, are still quite high. We have seen that in the US and Europe, for example, but we are beginning to get a bit of less bad news on the core inflation side, where some of the supply chains, used cars, for example, some of that pressure on inflation is beginning to slow and that’s the good news,” said Gill.

He said that he is looking at sectors where valuations are beaten up. He highlighted that valuations are far more compressed in China.

Also Read: <a href="https://www.cnbctv18.com/economy/from-sbis-dinesh-khara-to-nomuras-sonal-varma-who-said-what-on-indias-17-month-high-retail-inflation-13146192.htm">From SBI's Dinesh Khara to Nomura's Sonal Varma: Who said what on India's 17-month high retail inflation</a>

Gill stressed that margin will be key in Q1 as commodity costs could take a toll on margins. “Q1 earnings around the world, in most markets, are now almost looking to be the next big trigger and what is interesting here is that margins will really turn out to be key. So without getting into individual companies, margins will be the big market focus because if anything higher inflation is positive for revenue, the nominal earnings may go up, but we are in an environment where there like to be some worries about costs numbers, some worries for what that means for margin. So whether that's in India or in the US or in other major markets, that is going to be the main focus and that is holding some consensus expectations back,” he said.

Watch the video for the full interview.

<a href="https://www.cnbctv18.com/market/stocks/stock-market-news-live-updates-nifty-bse-sensex-brent-crude-bitcoin-gold-price-mindtree-results-infosys-13182602.htm">Catch all the latest updates from the stock market here</a>

Valuations make China more attractive than India: Standard Chartered

[wealthdesk shortname="HDFC Bank" isinid="INE040A01034" bseid="500180" nseid="HDFCBANK" sector="Banks - Private Sector" exchange="nse"]Andrew Holland, chief executive officer of Avendus Capital Public Markets Alternate Strategies, on Monday, said that the demand for commodities is likely to remain weak.

In an interview to CNBC-TV18, he said, “Demand destruction will happen because of higher commodity prices and therefore, commodity prices will fall.”

Talking about baking space, Holland said, “There is a lot of pressure on the banks in the very short-term and there a leadership move across all the major banks. One thing I want to say is with the merger of HDFC and HDFC Bank, this will play a bigger role going forward.”

Also Read: <a href="https://www.cnbctv18.com/market/rising-agri-commodity-prices-providing-export-push-see-rural-demand-improving-prabhudas-lilladher-13090512.htm">Rising agri commodity prices providing export push; see rural demand improving: Prabhudas Lilladher</a>

According to him, India is likely to emerge as an investor’s destination. “India will emerge as a destination that investors will want to come back to. Interest rates rising in India will happen in June time and that will have an impact on earnings as well,” said Holland.

For the entire interview, watch the accompanying video

<a href="https://www.cnbctv18.com/market/stocks/stock-market-news-live-updates-nifty-bse-sensex-brent-crude-bitcoin-gold-price-mindtree-results-infosys-13182602.htm">Catch all the latest updates from the stock market here</a>

Company	Rupees
52H	3090.00
52L	2146.85
lower_circuit_limit	2484.45
upper_circuit_limit	3036.45
30DayAvg	2643.72

Daywise	Rupees
5 Days	2746.72
10 Days	2721.43
20 Days	2635.01
50 Days	2588.27
100 Days	2508.04
200 Days	2583.06

Company	Promoter	DII	Public
Jun' 20	34.77	54.43	65.23
Mar' 20	34.63	54.85	65.37
Dec' 19	34.63	54.16	65.37
Sep' 19	34.63	55.64	65.37

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